# SBA loan interest rates in 2026

Source: https://businessloanbroker.ai/guides/sba-loan-interest-rates/
Site: BusinessLoanBroker.ai (powered by Levr)

> SBA loan interest rates are prime plus a capped spread, roughly 10% to 13.5% on 7(a) with prime near 7%. How 504, Express and microloan rates are set.

Your SBA loan interest rate is set by a formula: a base rate, usually prime, plus a spread the SBA caps by loan size. With prime near 7% in 2026, most 7(a) loans run roughly 10% to 13.5%, 504 debentures are fixed near 6% to 7%, and microloans sit around 8% to 13%. Prime moves, so check the current rate before you compare offers.

## Key facts
- **7(a):** Prime plus 3% to 6.5%, about 10% to 13.5% with prime near 7%
- **504:** Fixed on the debenture, recently about 6% to 7%
- **Express:** Prime plus 4.5% to 6.5%, about 11.5% to 13.5%
- **Microloans:** 8% to 13%, set by the intermediary
- **Fees:** Guarantee fee of 0% to 3.75% of the guaranteed portion

## How is an SBA loan interest rate set for 7(a)?

Base rate plus a spread, with the spread capped by loan size. The base is usually the [prime rate](https://businessloanbroker.ai/glossary/prime-rate/). On variable rate loans the well known caps are prime plus 6.5% for loans of $50,000 or less, 6% up to $250,000, 4.5% up to $350,000, and 3% above that. Fixed rate caps sit a little higher, from prime plus 5% on larger loans to prime plus 8% on the smallest.

Those are ceilings. Banks often price strong borrowers with larger loans at prime plus 2% to 2.75%, while nonbank lenders and smaller loans tend to sit at the cap. Most [7(a) loans](https://businessloanbroker.ai/business-loans/sba-7a-loans/) are variable and adjust quarterly.

## How are SBA 504 loan rates set?

The debenture portion is fixed for the full term and set when the debenture is sold, not when you apply. Each month the debentures are sold, priced off the ten year Treasury yield plus a spread, and servicing and guarantee fees are added to give an effective rate. In recent months that has run about 6% to 7%.

The bank's first lien is priced by the bank: often fixed for five to ten years and then reset, typically a point or two above the debenture rate. The blended rate on an [SBA 504 loan](https://businessloanbroker.ai/business-loans/sba-504-loans/) is usually the lowest fixed rate a small business can get on property.

## What do SBA Express and microloan rates look like?

Higher than a standard 7(a), because the SBA guarantees less. On [SBA Express loans](https://businessloanbroker.ai/business-loans/sba-express-loans/) the lender sets the rate up to prime plus 6.5% for loans of $50,000 or less and prime plus 4.5% above that, so about 11.5% to 13.5% with prime near 7%. Express lines of credit use the same caps and usually float.

[SBA microloans](https://businessloanbroker.ai/business-loans/sba-microloans/) come from nonprofit intermediaries that borrow from the SBA and lend up to $50,000. They set their own rates within SBA limits, and the SBA says most fall between 8% and 13%. The rate is usually fixed.

## What moves SBA loan rates up or down for you?

Four things: loan size, the base rate, the lender and your file. Size sets the cap, so a $400,000 loan is capped two to three points below a $40,000 one. Each Federal Reserve move passes straight into a variable loan. Banks typically price below the cap for a business with two years of returns, a [DSCR](https://businessloanbroker.ai/glossary/dscr/) of 1.25 or better and 680 credit; nonbank SBA lenders charge closer to it.

Fees change the true cost. The upfront guarantee fee runs from 0% to 3.75% of the guaranteed portion, and packaging fees of $2,000 to $5,000 are common. [Business loan rates explained](https://businessloanbroker.ai/guides/business-loan-rates-explained/) turns all of it into one comparable number.

## Where do you find current SBA rates?

Start with the prime rate, which the Federal Reserve and major newspapers publish. Add the spread your lender quotes and you have your 7(a) rate; the [SBA loan calculator](https://businessloanbroker.ai/tools/sba-loan-calculator/) turns it into a payment with the guarantee fee included. For 504, certified development companies publish the effective debenture rate after each monthly sale.

Current SBA rates are a range, not a number, and the only way to know yours is to get quotes. You can [apply once here](https://businessloanbroker.ai/apply/) and reach SBA lenders alongside conventional ones to compare real offers. In Canada, CSBFP loans are capped at the lender's prime plus 3%, and BDC sets its own rates.

## Is an SBA loan rate worth the wait compared with other loans?

For most small businesses, yes. A bank term loan for a strong borrower runs roughly 7% to 12%, so if you qualify for one, skip the guarantee fee and the 30 to 90 day process. Online term loans typically run 12% to 35%, and merchant cash advances cost far more, so for everyone below bank grade the SBA rate is usually the lowest available.

The downsides are real: time, paperwork, a personal guarantee from every 20% owner, and a variable rate that rises with prime. Weigh them on the [SBA loans overview](https://businessloanbroker.ai/business-loans/sba-loans/). Or ask your AI assistant to apply for you through our MCP server; see the [agents hub](https://businessloanbroker.ai/agents/).

| Program | How the rate is set | Typical range in 2026 | Fixed or variable |
|---|---|---|---|
| 7(a) standard | Prime plus a spread capped at 3% to 6.5% by loan size | About 10% to 13.5% | Mostly variable |
| SBA Express | Prime plus up to 4.5% or 6.5% by loan size | About 11.5% to 13.5% | Lender's choice, usually variable |
| 504 debenture | Ten year Treasury plus a spread and fees, set monthly | About 6% to 7% | Fixed for 10, 20 or 25 years |
| 504 bank portion | The bank's own pricing | About 7% to 9% | Often fixed 5 to 10 years, then reset |
| Microloan | Set by the intermediary within SBA limits | About 8% to 13% | Usually fixed |
| Disaster loan | Set by statute | 4% or less without credit elsewhere, otherwise 8% or less | Fixed |

## Questions and answers
**Are SBA loan rates fixed or variable?**

Most 7(a) loans are variable and adjust quarterly with prime, though lenders can offer a fixed rate under a slightly higher cap. The 504 debenture is fixed for its full term, and the bank half of a 504 is often fixed for five to ten years then reset. Express loans are the lender's choice; microloans are usually fixed.

**What is the lowest SBA loan rate I can get?**

On a 7(a) over $350,000 the variable cap is prime plus 3%, and banks often go lower for strong borrowers, to about prime plus 2% to 2.75%. The lowest SBA rate overall is usually the 504 debenture, recently about 6% to 7% fixed. Add the guarantee fee when you compare, since it raises the true cost.

**Does the SBA guarantee fee change my interest rate?**

No. It is a one time fee on the guaranteed portion, 0% to 3.75% depending on size and the fiscal year, and most borrowers finance it into the loan. Over a ten year term it typically adds about half a point to a point to the effective APR, so compare offers on APR.

**What is the Canadian equivalent?**

Canada has no SBA. The Canada Small Business Financing Program caps the rate at the lender's prime plus 3% on variable loans, or the residential mortgage rate plus 3% on fixed, and charges a 2% registration fee. BDC lends directly at rates it sets, typically above bank pricing but with more flexible terms.

## Related
- [SBA loans](https://businessloanbroker.ai/business-loans/sba-loans/)
- [SBA 7(a) loans](https://businessloanbroker.ai/business-loans/sba-7a-loans/)
- [SBA 504 loans](https://businessloanbroker.ai/business-loans/sba-504-loans/)
- [SBA loan calculator](https://businessloanbroker.ai/tools/sba-loan-calculator/)
- [Prime rate](https://businessloanbroker.ai/glossary/prime-rate/)
- [Business loan rates explained](https://businessloanbroker.ai/guides/business-loan-rates-explained/)

## Apply
Apply for the business: https://apply.businessloanbroker.ai/signup?levr_placement=md-sba-loan-interest-rates
MCP server for AI agents: https://mcp.businessloanbroker.ai/mcp (docs: https://businessloanbroker.ai/agents/mcp/)